Amid heightened expectations of bold reforms to help revive India’s economic growth, Union Finance Minister Nirmala Sitharaman on Saturday tabled Budget 2020 to “fulfil” aspirations of all Indians. In her speech, hailed by Prime Minister Narendra Modi as having “vision” and “action”, India’s first full-time woman finance minister unveiled a roadmap to take India to the next level: that of being a $5 trillion economy. She singled out startups for praise, recognising the role they have played as “engines of growth” for the Indian economy.

Publication: Yourstory

Date: February 3, 2020

“In the Union Budget announced by the honourable Finance Minister, there are measures and initiatives charted out that will aid consumption growth, particularly when it comes to taxation. In the current macro environment, more money in the hands of consumers through rate cuts, elimination of DDT etc. bodes well. The Finance Minister has also set the tone at the top by being empathetic about No Tax Harassment, resolving litigations etc. Furniture is a $42Mn category in India with MSME leading the charge in this industry. Resolving credit issues, APP based working capital solutions and more strategic aspects like National Logistic Policy are all initiatives that address core issues of our MSME sector.

Publication: Deccan Herald

Date: February 3, 2020

India on Saturday raised taxes on imports of goods such as electronic items, toys and furniture, aiming to give impetus to domestic manufacturing in a move that will hit Sweden’s IKEA and other foreign firms. The measures, announced by Finance Minister Nirmala Sitharaman in her 2020-21 budget, come amid criticism from some companies that India has increasingly resorted to protectionist rules that discriminate against foreign companies. Listing the new taxes, the government said they were in line with Prime Minister Narendra Modi’s “Make in India” program aimed at promoting domestic industry.

Publication: The New York Times

Date: February 3, 2020

The budget announcement of a five-year tax holiday on employee stock ownership plans (ESOP) for start-ups would benefit less than 250 out of around 50,000 startups in the country, according to community-based social media platform LocalCircles. Urging Finance Minister Nirmala Sitharaman to make changes to benefit majority of the startups, LocalCircles, in a letter to her on Monday, said: “India currently has approximately 50,000 start-ups and approximately 27,000 are registered under DPIIT Startup India programme. If we go by the section 80-IAC (as mentioned in the Budget 2020 document), less than 250 start-ups operating in the country that are recognised by the IMB (Inter-Ministerial Board), will be eligible for this benefit.”

Publication: Outlook India

Date: February 3, 2020

India’s tech entrepreneurs couldn’t be happier. After all, they were the stars of the country’s union budget for financial year 2021. The word “startup” found at least 15 mentions in Nirmala Sitharaman’s budget speech on Feb. 1, and the finance minister doled out some long-standing wishes of the industry while announcing certain measures that tackle key pain points of the community. “Budget 2020 and the finance minister’s speech has well-articulated India’s vision on not just being a leading provider of digital solutions, but one where technology is the bedrock of development and growth,” Debjani Ghosh, president of IT industry body NASSCOM said in a statement.

Publication: Quartz India

Date: February 4, 2020

Budget 2020 has been a thoughtful weaving together of specific proposals to tackle a wide range of issues. The startup community has welcomed the taxation reforms for employee stock ownership plans (ESOPs), which by their very nature offer returns that are indeterminate in time and quantum. The freshly introduced deferment of taxes for ESOPs is a welcome first step in aligning ESOP-related taxation to realised gains. Similarly, increasing the turnover threshold to Rs 100 crore for startups and extending the set-off period for carry forward of losses to 10 years, will allow startups to optimise their growth decisions in their formative years.

Publication: The Economic Times

Date: February 4, 2020

The underlying theme of Budget 2020 – wealth creation for all – anchored on the ‘Sabka Saath, Sabka Vikas and Sabka Vishwas’ motto underlines the way forward to build a vibrant economy, propelled by inclusive growth. As per the Economic Survey, India has fared reasonably well in terms of its rankings. The central government debt has decreased by 3.3% of GDP. The World Bank’s Ease of Doing Business rankings has seen India move up by 79 places. In the Global Innovation rankings, India has gone from the 74th to 52nd position.

Publication: Business Today

Date: February 4, 2020

If you have been befuddled by news headlines which alternately feature the astronomical losses being posted by online shopping sites and the equally astronomical market capitalizations they seem to secure from private equity investors, be comforted that you are not the only one to be so confounded. The mechanisms that drive internet-based businesses, particularly those that deal with consumer e-commerce, are not the same that have driven traditional businesses. Unraveling these new processes will go a long way towards taking a rational public policy stance on the controversies surrounding consumer e-commerce in India.

Publication: Business Standard

Date: February 5, 2020